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Willdan Group Reports Increased Revenues and Earnings for Third Quarter 2017
Investment Community Conference Call Today at 5:30 p.m. Eastern Time
ANAHEIM, Calif. – November 2, 2017 – Willdan Group, Inc. (“Willdan”) (NASDAQ: WLDN), a provider of professional technical solutions, today reported financial results for its third quarter ended September 29, 2017 and updated its previously provided targets for fiscal year 2017.
Third Quarter 2017 Highlights
For the third quarter of 2017, Willdan reported total contract revenue of $69.0 million and net income of $2.9 million, or $0.31 per diluted share. This compares with total contract revenue of $58.7 million and net income of $2.5 million, or $0.28 per diluted share, for the third quarter of 2016. An increase in Willdan’s effective tax rate from 18% to 31% as a result of the absence of a renewal of the Section 179D tax deductions resulted in earnings per share increasing at a lower rate than operating income.
“We see positive trends across Willdan as a result of our disciplined focus on expanding into new geographies, new customers and new programs with existing customers,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “It’s a good year. We have won all of our recompetes this year. The new acquisition of Integral Analytics is doing well as demonstrated by the Hawaiian Electric press release on October 19, 2017. The number of opportunities is accelerating due to our new capabilities and geographies.”
Third Quarter 2017 Financial Highlights
Total contract revenue for the third quarter of 2017 was $69.0 million, an increase of 17.6% from $58.7 million for the third quarter of 2016. That increase was primarily due to continuing strong demand for our services in the Energy Efficiency Services and Engineering Services segments. The revenues for those segments for the third quarter of 2017 increased 19.2% and 16.1%, respectively, from the third quarter of 2016. Also included in our total contract revenue and contract revenue in our Energy Efficiency Services segment for the third quarter of 2017 was incremental contract revenue of $0.5 million attributable to the acquisition of Integral Analytics, Inc. (“Integral Analystics”) that we completed on July 28, 2017. As the economy continues to grow, utility customers and governmental agencies continue to see demand from their constituents for a greener, more productive supply of energy and investment in governmental infrastructure. Organic revenue growth was 16% in the third quarter. Organic revenue growth is calculated as revenue generated by Willdan and its acquisition targets in the applicable period of the current year divided by the revenue generated by Willdan and its acquisition targets in the same period of the prior year.
Direct costs of contract revenue were $48.7 million for the third quarter of 2017, an increase of $6.1 million, or 14.5%, from $42.6 million for the third quarter of 2016. The increase was primarily due to the expanded revenue base from new contracts commencing during the quarter in the Energy Efficiency Services segment.
Revenue, net of subcontractor services and other direct costs (see “Use of Non-GAAP Financial Measures” below), for the third quarter of 2017 was $31.7 million, an increase of 19.5% from $26.5 million for the third quarter of 2016.
The following information was filed by Willdan Group, Inc. (WLDN) on Thursday, November 2, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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